Net Promoter Score: The Basics

NPS Drives Business Growth

The best way to ensure business growth? A focus on customer experience. Measure the experience with the Net Promoter Score, or NPS, the only proven leading indicator of business growth, and you’re on your way. Download our ebook for an in-depth overview.

Industry-Transforming, Research-Driven

Net Promoter Score®, or NPS®, measures customer experience and predicts business growth. This proven metric, co-developed by Satmetrix and based on years of research, transformed the business world. Today, it provides the core measurement for leading customer experience management programs.

A Metric for the Customer Journey

You won’t get far in your efforts to improve the customer experience if you don’t have a comprehensive view of the customer journey. Use your NPS as the key measure of your customers’ overall perception of your brand. It’s the only customer experience metric that sheds light on every aspect of the journey.

Complement NPS with other metrics and insights from various points along the customer journey. Explore the powerful, configurable Customer Graph in Satmetrix NPX for a compelling, clickable view of the customer journey.

Trusted by Your Workforce

Straightforward and easily understood by everyone from the corner office to the front line, NPS open eyes. It provides a touchstone for engaging your workforce in your customer experience program. The deeper the engagement from your workforce, the more problems you can solve together, so choose a metric that’s meaningful. Take it to the next level by collecting real-time NPS, only available through Satmetrix; contact us to learn more.

Business Benefits That Drive Growth

NPS predicts growth because of the economics behind Net Promoter. Promoters and Detractors behave differently, with different impacts on your business. For example, Promoters are usually less price-sensitive than other customers because they believe they’re getting good value overall from your company. The opposite is true for Detractors, who are more price-sensitive. At the same time, Promoters buy more, more often, than Detractors do.

The benefits extend to retention. Detractors generally defect at higher rates than Promoters, which means that they have shorter and less profitable relationships with your company. Rescue those Detractors—turn them into Promoters—and experience higher margins.

Finally, word of mouth has a powerful effect on your bottom line. What proportion of new customers selected your firm because of reputation or referral? Promoters account for most referrals. On the other hand, Detractors are responsible for negative word of mouth, so you can attribute the cost of this drag on growth to them.

Improve Your Score With NPX

The NPS Calculation

Calculate your NPS using the answer to a key question, using a 0-10 scale: How likely is it that you would recommend [brand] to a friend or colleague? This is called the Net Promoter Score question or the recommend question. Respondents are grouped as follows:

Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).